Case Study: Building a Statewide AI Strategy in South Carolina

Michael Sandor, Director Digital Government Services, South Carolina Department of Administration

Overview

South Carolina’s Department of Administration embarked on a transformative journey to create a statewide AI strategy aimed at driving innovation, enhancing public services, and ensuring responsible AI use. The initiative focuses on building a collaborative framework that balances AI opportunities and risks while addressing the diverse needs of over 80 state agencies.

Objective

The primary goal was to develop a unified AI strategy that:

• Promotes responsible AI use across state agencies
• Fosters collaboration among stakeholders, ensuring all voices are heard
• Navigates legal and policy challenges associated with AI adoption

Solutions Implemented

Collaborative Strategy Development

• Involved representatives from 80+ state agencies, ensuring diverse stakeholder input.
• Partnered with third-party consultants to incorporate industry best practices.
• Published the Statewide AI Strategy in June 2024, reflecting a shared vision for AI use across South Carolina.
  

Three-Pillar Framework: Promote, Pursue, Protect

• Promote: Encourage responsible AI adoption while maximising opportunities, including workforce development.
• Pursue: Drive innovative solutions by exploring emerging AI applications.
• Protect: Prioritise data security, privacy, and ethical use of AI technologies.

Stakeholder Engagement and Communication

• Created a transparent engagement process involving long meetings, detailed minutes, and iterative feedback loops.
• Maintained open communication channels to ensure all stakeholders were informed and involved in decision-making.

Challenges Addressed

Lack of Direct Citizen Feedback

• The Department of Administration does not interact directly with citizens but serves other state agencies.
• Addressed this by gathering insights from legislators, community members, and industry experts to shape AI policies that reflect citizen needs.

Legal and Policy Uncertainty

• Outdated legal frameworks posed challenges for AI contracts, data privacy, and accountability.
• Developed Acceptable Use Policies (AUPs) tailored to AI’s unique challenges, ensuring compliance and security.

Diverse Stakeholder Needs

• Aligning the expectations of 80+ state agencies with varied priorities and readiness levels.
• Fostered collaboration by creating a unified vision and flexible strategy that accommodates different use cases and adoption rates.

Impact

Unified Statewide AI Vision

• 80+ agencies aligned under a common AI strategy, promoting consistency in AI implementation across South Carolina.
• Established a shared framework for responsible AI use, balancing innovation and risk management.

Increased Collaboration and Buy-In

• Enhanced stakeholder engagement led to greater support and understanding of AI’s potential and challenges.
• Created a culture of collaboration and shared responsibility among agencies, ensuring sustainable AI integration.

Pioneering Responsible AI Use

• Positioned South Carolina as a leader in public sector AI adoption, setting a benchmark for other states.
• Ensured ethical, transparent, and secure AI implementation, maintaining public trust and regulatory compliance.

Philosophy of AI Strategy

South Carolina’s AI strategy is built on a foundation of collaboration, inclusivity, and responsibility. By involving all stakeholders in the design and decision-making processes, the state ensures that the AI framework is adaptive, transparent, and aligned with public values. The Promote, Pursue, Protect framework balances innovation with security and ethical standards, securing a sustainable, future-ready AI ecosystem for South Carolina’s public services.

Key Takeaways

• Collaborative strategy development ensures diverse stakeholder input and shared ownership.
• Three-pillar framework balances innovation opportunities with security and ethical responsibilities.
• Transparent communication and engagement build trust, buy-in, and a culture of collaboration.

This case study demonstrates how South Carolina’s strategic approach to AI serves as a model for responsible, inclusive, and innovative public sector transformation.